STX Heavy Industries to Rebrand as HD Hyundai Marine Engine Following Acquisition by HD KSOE

STX Heavy Industries is set to undergo a name change to “HD Hyundai Marine Engine” following its acquisition by HD Korea Shipbuilding & Offshore Engineering (HD KSOE), according to Businesskorea.

Key Developments

• Shareholders’ Meeting: On July 30, STX Heavy Industries will hold a shareholders’ meeting to amend its articles of incorporation and appoint new internal and external directors. During this meeting, the company’s name will officially be changed to HD Hyundai Marine Engine, integrating it as a subsidiary of HD KSOE.
• Acquisition Details: HD KSOE decided to acquire a 35.05 percent stake in STX Heavy Industries for approximately 81.3 billion won (about $58.66 million) in July last year. The acquisition process has now been finalized, receiving conditional merger approval from the Fair Trade Commission (FTC) the previous day.

Expected Synergies

HD KSOE anticipates several benefits from the acquisition of STX Heavy Industries, including:

• Expanded Production Capacity: The acquisition will enable HD KSOE to expand its production capacity for large two-stroke engines.
• Cost Competitiveness: By localizing key components, HD KSOE aims to enhance its cost competitiveness.
• Overseas Sales Networks: The acquisition will allow for the sharing and expansion of overseas sales networks.

Strategic Implications

The rebranding and integration of STX Heavy Industries as HD Hyundai Marine Engine signify a strategic move by HD KSOE to strengthen its position in the marine engine industry. The acquisition aligns with HD KSOE’s broader objectives of boosting production capabilities, reducing costs, and leveraging global sales networks.

This move is expected to create significant synergies, positioning HD KSOE and its newly acquired subsidiary for enhanced competitiveness and growth in the global market.